All the major cryptocurrencies gained significantly on Wednesday. The cryptocurrency tumbled last week with Bitcoin touching nearly a six-month low. However, surprising the market and investor, Bitcoin price recovered on January 26. The world’s biggest and best-known cryptocurrency, was trading 4.83 per cent higher at $37,791.11 on Wednesday morning. according to CoinmarketCap. It is now about half its $69,000 peak in November. It had a steep fall on January 21. Also, the digital token further gained market dominance rose to 42.04 per cent.
Bitcoin has had major price fluctuations as risk appetite has fallen on inflation fears and anticipation of a more aggressive pace of interest rate hikes from the US Federal Reserve.
“On the weekly timeframe, Bitcoin can be seen trading along the support level. The next support for Bitcoin is expected at the $30,140 level. The buying momentum has moderately picked up in the last couple of days and we can expect this to continue if the prices continue to stay at this level,” said WazirX trade desk in a note.
Whereas, Ether, the coin linked to ethereum blockchain and the second largest cryptocurrency, also surged more than 2 per cent at $2,452, as per Coinmarketcap. Binance Coin was also up 4.5 per cent at $380. Dogecoin price rose over 6 per cent to $0.14 whereas Shiba Inu jumped over 4 per cent to $0.000021.
Among others, most currencies seem to be in recovery mode as Avalanche has risen 6.55 per cent and Solana 3.88 per cent. The performance of other cryptos also improved as XRP, Terra, Stellar, Cardano, Polygon were also trading with gains over the last 24 hours.
Cryptocurrencies has come under widespread selling pressure in recent weeks, with traders pointing to hawkish signals from the Federal Reserve and a selloff in technology shares as reasons for traders to withdraw from risky assets. The digital tokens and stocks have fallen together since the start of the year, responding to investor worries about how a series of expected Federal Reserve interest-rate increases will ripple through markets.
“Despite the market crash, Ex-Goldman CEO Lloyd Blankfein still has faith in the industry seeing how the ecosystem and digital assets have matured in the past. With the US Federal Reserve kicking off their January policy meeting later this week, investors are buckling down for more hawkish policies impacting the global economy and the crypto market. ” noted CoinDCX research team.
“Yet, looking at the sheer pace of innovation and growth of the crypto sector in just over a decade, the current weak market may just be a bump in the crypto’s journey and does not determine its long-term performance,” CoinDCX stated in its note.
The cryptocurrency market capitalisation touched $1.66 trillion during the last 24 hours while the market volume over the last 24 hours hit $80.34 trillion.
In other news, The International Monetary Fund (IMF) wants El Salvador to drop the highly volatile cryptocurrency Bitcoin as legal tender and strictly regulate the electronic wallet the government has pushed adoption of across the country.
Here are the top 10 cryptocurrencies and their prices on January 26 2022 (data from coinmarketcap.com at the time of publishing this article)
Bitcoin $37,660.04 or 4.34% gain in the last 24 hours
Ethereum $2,478.70 or 3.57% gain in the last 24 hours
Cardano $1.06 or 3.39% gain in the last 24 hours
Tether $1.00 or 0.01% gain in the last 24 hours
Binance $1.00 or 0.12% gain in the last 24 hours
XRP $0.6268 or 5.04% gain in the last 24 hours
Solana $95.36 or 7.05% gain in the last 24 hours
Polkadot $18.84 or 7.21% gain in the last 24 hours